Smartphones Drive Third Quarter Growth in the Worldwide Mobile Phone
Market, According to IDC

October 25, 2012 11:12 PM Eastern Daylight Time

FRAMINGHAM, Mass.--(BUSINESS WIRE)--The worldwide mobile phone market grew 2.4% year over year in the third
quarter of 2012 (3Q12), driven by heavyweights Samsung and Apple as
Nokia dropped off the Top 5 list of smartphone vendors. According to the
International Data Corporation (IDC)
Worldwide
Quarterly Mobile Phone Tracker, vendors shipped a total of 444.5
million mobile phones in 3Q12 compared to 434.1 million units in the
third quarter of 2011.

In the worldwide smartphone market vendors shipped 179.7 million units
in 3Q12 compared to 123.7 million units in 3Q11. The 45.3%
year-over-year growth was slightly above IDC's forecast of 45.2% for the
quarter.

Equally noteworthy was the decline of Nokia, which was replaced by
Research In Motion as a Top 5 smartphone player. Nokia's exit from the
Top 5, where it had resided since the inception of IDC's Mobile Phone
Tracker in 2004, was precipitated by the rise of Samsung and Apple
globally and high-growth vendors like Huawei in China, where Nokia was
the dominant player as recently as the third quarter of 2011.

"Nokia's share losses have meant gains for competitors," said Kevin
Restivo, senior research analyst with IDC's Worldwide
Quarterly Mobile Phone Tracker. "The company's transition away from
Symbian-powered smartphones to ones shipped with Windows Phone has left
ample opportunity for rivals to steal share away from Nokia over the
past 18 months. However, the smartphone market is still relatively
nascent, which means there's room for multiple vendors and operating
systems to flourish, including Nokia."

"Nokia is not the only smartphone vendor in transition," added Ramon
Llamas, research manager with IDC's Mobile
Phone team. "Research In Motion, although still a market leader,
expects to start shipping its first BB10 devices in 2013. Motorola, once
the number 3 smartphone vendor worldwide, is redirecting itself under
its parent company Google. These are just two vendors among many that
feel the competitive pressure of Samsung and Apple, but are striving to
create multiple points of differentiation to assert upward pressure."

Nonetheless, IDC expects long-term mobile phone and smartphone shipment
demand to grow due to the central role mobile phones play in people's
lives. "At the heart of mobility is communication," noted Llamas.
"Mobile phones and smartphones play a critical role in keeping people
connected, regardless of location. In addition, their utility beyond
communication – productivity, entertainment, and multimedia – continues
to add to their value."

Smartphone Vendor Highlights

Samsung maintained its leadership position in the worldwide
smartphone market, posting another record quarter for itself and the
industry, and more than double the total volume of its next closest
competitor, Apple. This marks the first time since 4Q09 that a single
company held more than 31% market share in a single quarter. Samsung's
growth was fueled in large part by its broad, deep, and refreshed
Android portfolio, highlighted by the full quarter availability of its
flagship model Galaxy S III. In addition, the company announced multiple
mid-range and mass-market models, including a new Windows Phone, the
ATIV S.

Apple iPhone shipments finished the quarter nearly flat from the
previous quarter, reaching a total of 26.9 million units. Although the
iPhone 5 was only on the market for one week in 3Q12, the aggressive
rollout of the device resulted in more than 5 million iPhones sold in
the first weekend of availability, which helped buoy Apple's shipment
totals. iPhone sales weren't dampened by the introduction of its Maps
software, which was not completely ready for use. Instead, the iPhone
5's larger screen and 4G LTE connectivity generated user interest. What
remains to be seen is how Apple will fare during the holiday quarter,
when the iPhone 5 will be available in more countries worldwide.

Research In Motion's shipment volumes appear to have flattened
though the company posted the second-highest year-over-year decline of
any the leading vendors. RIM relied on its older product portfolio and
models to achieve its status as a top 5 smartphone seller. RIM's
installed base, which topped 80 million active users during the quarter,
provides further evidence of the company's widespread presence globally.
Still, without a new flagship model in time for the holiday season and
BB10 models not expected until the first quarter of 2013, RIM's position
as a top 5 smartphone vendor will be under tremendous pressure from
other companies.

ZTE finished among the top 5 smartphone vendors globally thanks
to continued international diversification efforts last quarter. ZTE has
grown its smartphone sales of late thanks primarily to an uptick in
lower-cost smartphone sales in many emerging markets. The company has
traditionally been dependent on sales of phones to China, where the
company is based. However, notable progress was made in North America
last quarter.

HTC clung to the number 5 smartphone spot last quarter thanks to
sales of key models such as the HTC One X and the EVO 4G. Continued
year-over-year growth in the Asia/Pacific region helped the smartphone
vendor offset some of the share losses the vendor has endured in key
mature markets, namely the U.S. The company hopes to rejuvenate its
global fortunes this quarter with the introduction of the 8X and 8S
models, powered by Microsoft's Windows Phone 8, among others. However,
it will have to convince consumers that the differences between the
models and Android-powered phones or iPhones are interesting enough to
merit a purchase.

Top Five Smartphone Vendors, Shipments, and Market Share, 2012
Q3

(Units in Millions)

3Q12 Unit

3Q12 Market

3Q11 Unit

3Q11 Market

Year-over-

Vendor

Shipments

Share

Shipments

Share

year Change

Samsung

56.3

31.3%

28.1

22.7%

100.4%

Apple

26.9

15.0%

17.1

13.8%

57.3%

Research In

Motion

7.7

4.3%

11.8

9.6%

-34.7%

ZTE

7.5

4.2%

4.1

3.3%

82.9%

HTC

7.3

4.0%

12.7

10.3%

-42.5%

Others

74.0

41.2%

49.9

40.3%

48.3%

Total

179.7

100.0%

123.7

100.0%

45.3%

Source: IDC Worldwide Mobile Phone Tracker, October 25, 2012

Note: Data are preliminary and subject to change. Vendor shipments
are branded shipments and

exclude OEM sales for all vendors.

In addition to the table above, a graphic showing the relative market
shares of the top 5 smartphone vendors over the previous five quarters
is available at IDC.com. The chart is intended for public use in online
news articles and social media. Instructions on how to embed this
graphic can be found by viewing this
press release on IDC.com.

Top Five Total Mobile Phone Vendors, Shipments, and Market
Share, 2012 Q3

(Units in Millions)

3Q12 Unit

3Q12 Market

3Q11 Unit

3Q11 Market

Year-over-

Vendor

Shipments

Share

Shipments

Share

year Change

Samsung

105.4

23.7%

87.2

20.1%

20.9%

Nokia

82.9

18.7%

106.5

24.5%

-22.2%

Apple

26.9

6.1%

17.1

3.9%

57.3%

LG Electronics

14.0

3.1%

21.1

4.9%

-33.6%

ZTE

13.7

3.1%

17.6

4.1%

-22.2%

Others

201.6

45.3%

184.6

42.5%

9.2%

Total

444.5

100.0%

434.1

100.0%

2.4%

Source: IDC Worldwide Mobile Phone Tracker, October 25, 2012

Note: Data are preliminary and subject to change. Vendor shipments
are branded shipments and

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